POLITICS AND POWER IN RESOURCE ALLOCATION: NPDC CASE STUDY

ABSTRACT

The process of dividing and distributing available, limited resources to competing, alternative uses that satisfy unlimited wants and needs is both a science and an art. Resource allocation arises as an issue because the resources of an organization are in limited supply, however wants are usually unlimited, and any given resource can have many competing alternative uses. Organizations purport to make decisions in rationalistic terms while most observers and participants know that power and politics play a significant if not an overriding role. The deployment of devolved, formula-based systems of resource allocation has been accompanied by the rhetoric of rationality. In particular they are seen as mechanisms for reducing the influence of strong contending inter-relational forces within an organization. Using NPDC as a case study, this research explores this contention. It commences with a brief reviews of earlier literature relating to politics and power in the context of the resource allocation process within organizations, in particular the concept of the political model of institutions and the exercise of sub-unit power in the resource allocation  process and then explanation of the resource allocation process in NPDC context. From the analysis of the data collected certain characteristics are identified which the development of supposedly more rational systems are aimed at eradicating. The research proceeds by discussing the findings from the study which demonstrate that micro-political activity and sub-unit power remain significant influences within the so called devolved formula based systems. The research concludes with some managerial implications and recommendations.